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Reinsurance (Tables)
 9 Months Ended
Sep. 30, 2019
Insurance [Abstract]  
Effects of Reinsurance on Statement of Operations
Effect of Reinsurance on Statement of Operations

 
Third Quarter
 
Nine Months
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Premiums Written:
 
 
 
 
 
 
 
Direct
$
67

 
$
57

 
$
156

 
$
192

Assumed (1)
2

 
(7
)
 
3

 
324

Ceded (2)
(1
)
 
1

 
12

 
14

Net
$
68

 
$
51

 
$
171

 
$
530

Premiums Earned:
 
 
 
 
 
 
 
Direct
$
113

 
$
127

 
$
317

 
$
400

Assumed
12

 
19

 
42

 
33

Ceded
(2
)
 
(4
)
 
(6
)
 
(10
)
Net
$
123

 
$
142

 
$
353

 
$
423

Loss and LAE:
 
 
 
 
 
 
 
Direct
$
28

 
$
18

 
$
82

 
$
53

Assumed
2

 
1

 
4

 
(7
)
Ceded
—

 
(2
)
 
(11
)
 
(3
)
Net
$
30

 
$
17

 
$
75

 
$
43

____________________
(1)    Negative assumed premiums written were due to changes in expected debt service schedules.

(2)
Positive ceded premiums written were due to terminations, commutations and changes in expected debt service schedules.
Exposure by Reinsurer
Ceded Reinsurance (1)

 
As of
September 30, 2019
 
As of
December 31, 2018
 
(in millions)
Ceded premium payable, net of commissions
$
19

 
$
26

Ceded expected loss to be recovered (paid)
14

 
14

Financial guaranty ceded par outstanding (2)
1,343

 
2,389

Non-financial guaranty ceded exposure (see Note 3)
275

 
239

____________________
(1)
The total collateral posted by all non-affiliated reinsurers required to post, or that had agreed to post, collateral as of September 30, 2019 and December 31, 2018 was approximately $69 million and $80 million, respectively. Such collateral is posted (i) in the case of certain reinsurers not authorized or "accredited" in the U.S., in order for the Company to receive credit for the liabilities ceded to such reinsurers in statutory financial statements, and (ii) in the case of certain reinsurers authorized in the U.S., on terms negotiated with the Company.

(2)
Of the total par ceded to unrated or BIG rated reinsurers, $224 million and $236 million is rated BIG as of September 30, 2019 and December 31, 2018, respectively.
Schedule Of Commutations And Cancellations Of Reinsurance Contracts
Commutations of Ceded Reinsurance Contracts

 
Third Quarter
 
Nine Months
 
2019
 
2018
 
2019
 
2018
 
(in millions)
Increase in net unearned premium reserve
$
—

 
$
4

 
$
15

 
$
64

Increase in net par outstanding
—

 
224

 
1,069

 
1,457

Commutation gains (losses)
—

 
1

 
1

 
(16
)